Ethics and Sustainability: Apple's Business Decision Making Report

This report provides a critical review of ethics and sustainability in business, using Apple as a case study. It examines the importance of ethical principles in decision-making, highlighting their relevance to both large corporations like Apple and small businesses. The report explores how Apple's ethical considerations, including the influence of Steve Jobs, have contributed to its success and sustainability. It discusses the company's approach to ethical principles, code of conduct, and how it addresses ethical issues such as privacy and price fixing. Furthermore, the report emphasizes the benefits of ethical practices for small businesses, including improved employee engagement and market sustainability. The conclusion summarizes the key findings, emphasizing the crucial role of ethics in fostering a stable organizational culture and driving long-term success.

Sustainability and Ethics:
Assessment 2 Critical Review

Table of Contents
INTRODUCTION...........................................................................................................................1
Main Body.......................................................................................................................................1
1. Importance of ethics for building business decisions.............................................................1
2. Relevancy of ethics in business decision making of Apple....................................................2
3. Importance of ethics in respect of small businesses................................................................4
CONCLUSION................................................................................................................................5
.........................................................................................................................................................5

INTRODUCTION
Ethics are moral principles which govern the behaviour of individuals in the performance
of any activity. There is huge importance of ethics in making appropriate decisions by
determination of the ultimate value and standards of human action which help to ascertain that
the same is ethically right or wrong. Sustainability is the term which defines constant
performance of the organisation over the period of time (Barry and Herkert,2015). This can be
achieved only in the situation when able to apply ethical principles in organisational culture
properly. Apple is an American multinational organisation having its operations worldwide. The
different kind of offerings of this organisation includes computer software's, online service and
consumer electronics. The main objective of this report is about ascertainment of the contribution
of the ethics in success and sustainability of an organisation.
This report covers the importance and aid of ethics in making appropriate decisions,
contribution of ethics in the success of Apple and its support in development of the small
organisations.
Main Body
1. Importance of ethics for building business decisions
Ethics is a philosophy which includes performance of different actions like defending,
systematizing and recommending to ascertain that nature of conduct in form of right or wrong.
Ethics includes the moral principles, values and norms which are fixed by the management of the
organisation to follow by the employees while performing their functions irrespective the nature
of work. These will govern the behaviour of employees which has positive impact over the
overall organisational culture. This concept is much valuable for each type of organisation
whether small or large in nature. In MNC, the importance of the same is ascertain in the manner
that this will provides an opportunity in removal of cultural differences and help to build positive
working environment. Also, the other importance which was attached with the organisation
either be small or large is about high employee engagement and low labour turnover rate. All
these beneficence help the organisation to improve their decision making and attainment of
desired results which bring sustainability in future time period (Buil and et. al., 2016).
The seven different principles are covered under the term of ethics which are needed to
follow to made ethical decisions. These seven principles are known as beneficence,
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accountability, autonomy, maleficence, veracity, fairness and fidelity. Adherence of these
principles of ethics allows the organisation to made ethical decisions but they also needed to
include the point in such decisions about fulfilment of ultimate goals to ascertain effectiveness.
So, combination that can be achieved through this fact that a decision must be ethical and
effective in nature. Application and implementation of the same within the organisation decision
making process help in selection of best alternative. Selection of such alternative help the
organisation in satisfaction of all the stakeholders associated with organisation. The different
aspects which are attached with the process of decision making includes commitment i.e.
completion at any cost in right manner, Consciousness i.e. application of moral and consistent
behaviour and competency i.e. effective evaluation of information and suggestion of alternative
along with the ascertainment of the potential risks (Crane and et. al., 2019).
The different kind of benefits which are associated with adoption of ethical principles as
analysed above also have their individual contribution in building decision making process more
strong with the adherence of such principles. This is so because adhering principles allows in
betterment of internal structure and process and benefit attained in context of external support of
employees and stakeholders help to strength external structure or process of decision making.
For effective understanding, example of strategic decision of an organisation about
providence of new product line is evaluated. As the organisation focused on three main aspects
which is about adherence of principles of ethics that help to attain all corporate values, benefit to
all stakeholders and be in consistent with all the legal and regulatory terms also. After having so
man benefits and positiveness, there are many aspects which are attached with this concept
which has negative impact includes time consuming and difficult to merge the principles and
attributes of ethics with different external business situations. This will results into delay
decision making process that impacts the productivity in negative way. So, ascertained that not
necessary every-time that positive outcome is gathered by the organisation (Liu and et. al.,
2016).
2. Relevancy of ethics in business decision making of Apple
Apple is American multinational organisation and having their operation worldwide. At
present, this organisation is world's largest in terms of revenue and sales. The headquarter of this
organisation is situated in Cupertino, California. The different kind of products are offered by
this organisation in various streams (Markman and et. al., 2016). Presently, this organisation
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deals in online services, consumer electronics and computer software's. The success of the
organisation is seen over from the fact that the share price which was $3.30 per share in 1997
was become $140 till 2017. This organisation also earned place in Fortune Magazine as world's
most admired company from the last 10 years. The basic concept upon which organisation works
is upon quality, prestige and innovation which enable the organisation to hold the place in market
and in between the consumers too. In success of Apple huge role is played by Steve Jobs through
bringing change in their culture and the application of ethical principles. This will bring the
drastic change in the environment and structure of an organisation which allows employees to
use innovative ideas in completion of their work which results into creation of their trust and
loyalty towards an organisation. Now, Apple provides different type of products which
revolutionary in their era and huge support in success of an organisation like I Pod, I Pad,
Tablets, Mac, I phone etc. I phone hold 40% Smart phone market in US.
These are the some achievements which are uphold by the organisation over the period of
time. The basic cause behind this is about change in the approach of doing business which results
into creation of better culture and effective fulfilment of all the ethical principles. The starting of
the successful era for an Apple comes with the return of Steve Jobs in Company again in 1997.
The major change done by the jobs is about the adoption of close door policy where employees
are not allowed to provide information about their project to outsiders. Also, Job takes many
efforts in against of rival organisations who are indulge in infringement of their IPR. This step of
Apple build its position in market and front of consumers too. The principle of safety and
safeguarding the interests of their different stakeholders is justified from this step. To made
direct contact with their employee Jobs introduce flatten structure in the organisation. This help
to build direct communication of the employees with the Steve. Also, for further strength the
power of employee the two changes are put into culture by Job includes debate on ideas and
creation of employees vision (McNeill and Moore, R., 2015). The main four ethical principles
are integrate which are named as honesty, respect, confidentiality and compliance. Also, two
different type of code of conducts are prepared, one for business and other for suppliers. This
will help in performance of quality work. This will provides an opportunity to the employee to
report any kind of misconduct to Apple's Audit and finance committee. Another aspect that bring
culture and integration of ethics in the business operations of Apple is about evangelism.
According to this concept, this will includes includes such people who promote corporate
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products itself. All the employees along Steve Jobs promote the product of an organisation which
will help to get the support of other too. Evangelists not only the employees of the organisation
but also considered as customers. These are such changes in ethics and culture which shows the
story behind the success of an organisation like Apple (Quarshie, Salmi and Leuschner, 2016).
Even after getting the success there are many points where Apple faced ethical issues due
to having their operations. All these issues have significant impact over the success of the
organisation. This different type of issues which are faced by the organisation includes:
Privacy: consumer tracking is critical issue. Through the emergence of social
networking, mobile devices and internet use improves the organisation power to track the
consumers. In respect of Apple, it is important to trace such information as this will help the
organisation to improve their customer base. The Apple breach the privacy in 2011 and face
backlash. It is cleared up by the Apple and google that there are some apps which use the phones
internal GPS data to ascertain the location of phone.
Price fixing: Another ethical issue which is faced by apple is about fixing of the price of
e books with major book publishers for the purpose of the providence of best deals to I tunes.
This will bring Apple in ethical issue and faced the negative impact of the same upon their brand
name.
Rioting: Apple also faced the ethical issue of Rioting in 2012 due to halted the sales of I
phone 4S at retail stores of China. This will resulted into waiting of crowd for more than 48
hours creation of the situation of riot at Beijing. This will have negative impact over the
organisational operations along with their image.
3. Importance of ethics in respect of small businesses
Ethics does not have importance for large organisations but also this will have huge
benefit for small organisations too. It allows the organisation to frame common policies, norms
and values which provides the opportunity to sustain in market by improving the strength of the
employees. Adherence of those common values and norms provides an opportunity to bring
employee engagement which results into providence of quality work. The creation of positive
working environment help the employees to provide their best towards the accomplishment of
the organisational objectives through optimum utilisation of resources. Also, this will build the
trust and loyalty of the employees towards the working frameworks and procedures which
reduces labour turnover rate in future. Application and implementation of different principles of
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ethics provides an opportunity to made their structure stable in nature which provide flexibility to
the management of organisation to properly perform in diversified business environment
conditions. There are many other advantages which are associated with the concept of ethics
which is must to achieve by every small organisation is about sustainability in market. This will
bring competitive edge to the organisation and help them to attain competitive advantage against
all other competitors. The main aspect which is removed due to the application of ethics and
norms is about cultural differences. It has direct positive impact over the communication of an
organisation which allows in creation of effective bond with their employees who contribute
further in the success of an organisation.
CONCLUSION
It has been concluded from the above report that ethics is important in nature in respect of
determination of the stable culture of the organisation. This will further leads the organisations
towards the success and sustainability. The major role of ethics is shown over decision making.
It help to made ethical and efficient decisions about entry or exist of fist from the market. Ethics
help to determine specific norms and values which are required to follow by the employees
commonly. This will bring their improvement in their performance which help in
accomplishment of desired goals. Change in ethics and culture of Apple is ascertained in year
1997 after return of Jobs. The change is about adoption of close door policy and adoption of
flatten structure which results in drastic change of the culture of Apple and the same leads
towards their success over the period of time. Also, ethics contributes to the small organisation in
building positive working environment through which they are able to attain engagement and
support of employees in completion and achievement of desired results
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Online
Ethical Aspects Of Sustainability. 2010. [Online]. Available through:
<https://www.humansandnature.org/ethical-aspects-of-sustainability>
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